Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
367.937(2),
367.940(1),
(3), (4),
367.946(1),
(4),
367.954(8),
367.958(1),
(13)
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
367.972(2) authorizes the
Attorney General to promulgate administrative regulations to implement
KRS 367.932 to
367.974
and
367.991.
This administrative regulation establishes the requirements for a cemetery
company and preneed cemetery merchandise seller annual report form, identified
in
KRS
367.946(4), a preneed burial
contract license annual report form identified in
KRS
367.940(4), a cemetery
preconstruction project application form identified in
KRS
367.958(1), a cemetery
registration application form identified in
KRS
367.946(1), a cemetery
company and sellers of cemetery merchandise monthly report form identified in
KRS
367.954(8) and
367.958(13),
a preneed merchandise sellers application form as identified in
KRS
367.940(1), a preneed burial
contract sellers monthly report form as identified in
KRS
367.940(3), and an
irrevocable funeral trust agreement form as identified in
KRS
367.937(2).
Section 1. Definitions.
(1) "Bank of underground crypts" is defined
by
KRS
367.932(15).
(2) "Columbarium" is defined by
KRS
367.932(10).
(3) "Last twelve (12) months" means January 1
through December 31 of the preceding calendar year.
(4) "Mausoleum" is defined by
KRS
367.932(9).
(5) "Principal stockholder" means one (1) who
owns ten (10) percent or more of the corporate stock in the applicant
corporation.
(6) "Underground
crypt" is defined by
KRS
367.932(14).
Section 2. Cemetery Company and
Cemetery Merchandise Sellers Annual Report Form. The "Cemetery Company and
Cemetery Merchandise Sellers Annual Report" Form CPN-1, required by
KRS
367.946(4), shall contain
the following information:
(1) The phrase
"last twelve (12) months" means January 1 through December 31 of the preceding
calendar year;
(2) The last day
covered by this report;
(3) The
cemetery name and registration number;
(4) The nature of cemetery ownership,
selecting from one (1) of the following:
(a)
Corporation;
(b)
Proprietorship;
(c)
Partnership;
(d) Nonprofit;
or
(e) Municipal;
(5) The cemetery location and
mailing address, including city, state and zip code;
(6) The cemetery phone number;
(7) The name and address, including city,
state and zip code, of all trust companies holding perpetual care and
maintenance trust funds;
(8) The
account number of all perpetual care and maintenance trust accounts;
(9) A copy of the annual perpetual care and
maintenance trust report from the financial institution listing all
transactions that have occurred during the preceding year;
(10) The beginning balance of all perpetual
care and maintenance trust accounts;
(11) Perpetual care and maintenance trust
fund account deposit information, including:
(a) The unpaid balance from the prior
year;
(b) The number of graves sold
during the year, the amount collected on the grave sales, and the amount
deposited into the perpetual care and maintenance trust account from grave
sales;
(c) The number of lawn or
mausoleum crypts sold, the amount collected on the lawn or mausoleum crypt
sales, and the amount deposited into the perpetual care and maintenance trust
account from lawn or mausoleum crypt sales;
(d) The number of niches sold, the amount
collected on the sale of niches, and the amount deposited into perpetual care
and maintenance trust account from niche sales;
(e) The amount of unpaid trust deposits from
the current year. This shall include last quarter's deposits if not made before
the filing deadline; and
(f) The
total perpetual care and maintenance account deposits made during the last
twelve (12) months;
(12)
Additional gifts to perpetual care, including funds not required by
KRS
367.952(2);
(13) Perpetual Care and Maintenance Trust
Fund Account earnings information, including:
(a) All interest and dividends earned during
the current fiscal year;
(b) All
capital gains and losses;
(c) All
interest used during the current fiscal year;
(d) All taxes and fees; and
(e) Total earnings reinvested into the trust
balance;
(14) The ending
balance of the perpetual care and maintenance trust fund account;
(15) For registrants complying with
KRS
367.954 by trusting forty (40) percent of all
payments made for cemetery merchandise, the following information shall be
required:
(a) The name and address, including
city, state and zip code, of all trust companies holding cemetery merchandise
trust funds;
(b) The account number
of all cemetery merchandise trust accounts;
(c) A copy of the cemetery merchandise annual
trust report from the financial institution summarizing all transactions that
have occurred on the cemetery merchandise trust fund for the last twelve (12)
months. This shall include a ledger sheet listing all persons who have
purchased preneed cemetery merchandise within the last twelve (12)
months;
(d) The beginning balance
in the cemetery merchandise trust fund;
(e) All additions to the cemetery merchandise
trust fund, including:
1. The amount deposited
for sales from the last twelve (12) months;
2. The amount deposited for prior year
sales;
3. The total interest
earned;
4. All capital gains and
losses; and
5. The total additions
to the cemetery merchandise trust fund;
(f) The amount withdrawn during the last
twelve (12) months for:
1. Merchandise
provided;
2. Monies refunded;
and
3. Total withdrawals;
and
(g) The ending
balance of the cemetery merchandise trust fund;
(16) For registrants complying with
KRS
367.954 by placing preneed cemetery
merchandise in storage, the following information shall be required:
(a) The name and address, including city,
state and zip code, of all companies holding cemetery merchandise in
storage;
(b) The total dollar
amount of cemetery merchandise held in storage;
(c) The name and address, including city,
state and zip code, of the company issuing the surety bond covering the
cemetery merchandise held in storage; and
(d) The amount of the bond covering the
cemetery merchandise held in storage;
(17) For registrants complying with
KRS
367.954 by posting a good and sufficient bond
with the Attorney General's Office, the following information shall be
required:
(a) The name and address, including
city, state and zip code, of the bond company issuing the bond;
(b) The amount of the bond; and
(c) The total dollar amount of preneed
cemetery merchandise sold in the last twelve (12) months;
(18) The preneed burial license
number;
(19) A ledger sheet which
requires the following information:
(a) All
preneed burial contracts sold by the firm for which services have not yet been
performed or monies have not yet been refunded during the last twelve (12)
months (that is, contracts that are still in existence on December 31);
and
(b) All preneed burial
contracts for which services were performed or monies were refunded during the
last twelve (12) months (that is, accounts that had a positive balance on
January 1 but show a zero balance as of December 31);
(20) A reconciliation section containing
information on the following:
(a) The
beginning balance of the trust;
(b)
All deposits placed in the trust, including:
1. The additions to existing
contracts;
2. The new contract
deposits; and
3. The earnings on
all contracts;
(c) The
total deposits in the trust;
(d)
All withdrawals from the trust, including:
1.
The total refunds and conversions in the trust; and
2. The total number of trusts
serviced;
(e) The total
withdrawals from the trust;
(f) Any
unrealized gains or losses from market changes; and
(g) The ending balance in the
trust;
(21) A copy of
the annual preneed burial trust report statements from the financial
institution summarizing all transactions that have occurred on this fund for
the last twelve (12) months;
(22)
List all preconstruction sales project numbers;
(23) A status report of sales projects,
containing the following information for each preconstruction sales project:
(a) The date the preconstruction sales
project was registered with this office;
(b) The date the sales began;
(c) The date construction began;
and
(d) The number of sales during
the current year, including:
1. The number of
mausoleum crypts sold;
2. The
number of underground crypts sold; and
3. The number of niches sold;
(24) A ledger sheet
listing all persons who have purchased preconstruction crypts or niches within
the past twelve (12) months;
(25)
The amount received for preconstruction sales during the last twelve (12)
months, including:
(a) The amount received for
mausoleum crypt sales and the amount deposited into trust;
(b) The amount received for underground crypt
sales and the amount deposited into trust;
(c) The amount received for niche sales and
the amount deposited into trust; and
(d) The total amount deposited into
trust;
(26) The name and
address, including city, state and zip code, of the trustee holding the
preconstruction sales trust;
(27)
The account number of the preconstruction sales trust;
(28) Preconstruction sales trust information
including the following:
(a) Trust beginning
balance;
(b) Trust deposits from
sales for last twelve (12) months;
(c) Trust deposits from prior year
sales;
(d) Trust earnings derived
from:
1. Interest; and
2. Unrealized capital gains or
losses;
(e) Trust
withdrawals from:
1. Merchandise provided;
and
2. Monies refunded;
and
(f) Trust balance on
December 31;
(29) A copy
of the preconstruction sales annual trust report from the financial institution
summarizing all transactions for the preceding year;
(30) A brief explanation of the stage of
construction each project is in at the last day of the year;
(31) A certification that this is a true and
correct report of activity for the last twelve (12) months and that the person
completing the report is authorized to sign the report;
(32) A dated and notarized signature of the
individual duly authorized to sign the form, including the signatory's printed
name and title. If the cemetery is incorporated, the president or authorized
individual shall sign;
(33) If the
person signing did not prepare the report, the printed name, signature, and
title of the person who prepared the report is required;
(34) A ledger sheet for preneed cemetery
merchandise sales containing the following information:
(a) The cemetery name;
(b) The name of the financial institution in
which the trust is located;
(c) The
consumer's name in which the trust was created;
(d) The original contract date on which the
contract was entered;
(e) The
retail selling price of the cemetery merchandise;
(f) The amount deposited into the trust
account;
(g) Any earnings which
accrued during the last twelve (12) months;
(h) The amount of any trust that was refunded
during the last twelve (12) months;
(i) Any merchandise that was provided during
the last twelve (12) months; and
(j) The trust balance as of December 31;
and
(35) A ledger sheet
for preneed burial contracts containing the following information:
(a) The firm name;
(b) The signature of the preparer;
(c) The name of the financial institution in
which the trust is located;
(d) The
account number of the trust within the financial institution;
(e) The consumer's name in which the trust
was created;
(f) The original
contract date on which the contract was entered;
(g) Whether the contract is irrevocable;
(h) The trust balance as of January
1;
(i) The amount of any additions
which occurred during the last twelve (12) months;
(j) Any earnings which accrued during the
last twelve (12) months;
(k) Any
withdrawals from the trust, including trusts that were refunded, serviced, or
converted; and
(l) The trust
balance as of December 31.
Section 3. By midnight of March 31 following
the end of the last twelve (12) months, the "Cemetery Company and Cemetery
Merchandise Sellers Annual Report", CPN-1, shall be filed with the Attorney
General. A report postmarked by that time shall be considered timely
filed.
Section 4. Preneed Burial
Contract Annual Report. The "Preneed Burial Contract Annual Report", Form
CPN-2, as required by
KRS
367.940(4) shall contain the
following information:
(1) The licensee's
name, preneed burial license number, location, and mailing address including
city, state, and zip code;
(2) A
statement certifying that this is a true and correct report of activity for the
preceding year;
(3) A
reconciliation of the preneed burial contract trust account containing
information on the following:
(a) The
beginning balance of the trust;
(b)
All deposits placed in the trust, including:
1. All additions to existing
contracts;
2. All new contract
deposits; and
3. Earnings on all
contracts;
(c) The total
deposits in the trust;
(d) All
withdrawals from the trust, including:
1.
Total refunds and conversions in the trust; and
2. Total number of contracts
serviced;
(e) The total
withdrawals from the trust;
(f) Any
unrealized gains or losses from market changes; and
(g) The ending balance in the
trust;
(4) A dated and
notarized signature of the individual completing the form, acknowledging that
the information is an accurate accounting to the best of the signatory's
knowledge, and that the signatory is authorized to complete the report;
and
(5) A ledger containing the
following information on all contracts entered into between a consumer and the
preneed burial licensee which, as of December 31, have not been serviced or,
during the last twelve (12) months, were serviced, refunded, or converted:
(a) The name of the firm placing the funds in
trust;
(b) The signature of the
individual preparing the ledger;
(c) The year for which the ledger is being
completed;
(d) The name of the
financial institution in which the trust is located;
(e) The account number of the trust within
the financial institution;
(f) The
consumer's name in which the trust was created;
(g) The original contract date on which the
contract was entered;
(h) Whether
the contract is irrevocable;
(i)
The trust balance as of January 1;
(j) Any additions which occurred during the
last twelve (12) months;
(k) Any
earnings which accrued during the last twelve (12) months;
(l) Any withdrawals from the trust, including
trusts that were refunded, serviced or converted; and
(m) The trust balance as of December 31.
Section 5.
(1) By midnight of March 31 following the
preceding twelve (12) months, the Preneed Burial Contract Annual Report, CPN-2,
shall be filed with the Attorney General. A report postmarked by that time
shall be considered timely filed; and
(2) If a licensee filed an annual report that
included a portion of the calendar year preceding the effective date of this
administrative regulation, the licensee shall file a new annual report for that
portion of the year that was not previously reported.
Section 6. Cemetery Presale and
Preconstruction Project Application. The "Cemetery Presale/Preconstruction
Project Application", Form CPN-3, shall contain the following information:
(1) The parent company name;
(2) The cemetery name;
(3) The project name and any internal project
identification number which shall be used on all sales contracts;
(4) The cemetery telephone number;
(5) The cemetery location and address,
including street address, post office box, city, county, state, and zip
code;
(6) The cemetery mailing
address, including city, state, and zip code, if different from
location;
(7) The date sales began
or will begin on the project for which the application is being
submitted;
(8) The name and
address, including street address, city, state, and zip code, of the financial
institution where the preconstruction trust fund will be held and account
numbers for those trusts;
(9) If no
preconstruction trust fund is being used, applicant is required to attach a
bond issued by a surety company licensed to do business in Kentucky in an
amount sufficient to cover all payments made by or on account of purchasers who
have not received the purchased property and services and the bond numbers of
the attached bond;
(10) An
identification of the type of construction project for which the application is
submitted, selecting from the following types:
(a) Mausoleum;
(b) Columbarium;
(c) Underground crypt; or
(d) Bank of underground crypts;
(11) The number and type of units
to be sold;
(12) The gross selling
price of the units;
(13) The date
construction is scheduled to begin;
(14) The name of the contractor;
(15) A project cost estimate sheet and one
(1) of the following:
(a) For mausoleum
projects, a site plan showing exact dimensions of the construction site with
scaled drawings of existing buildings or landmarks;
(b) For lawn crypt projects, a sales chart
map which identifies each lot by number;
(16) The location of the project in the
cemetery;
(17) The locations where
temporary entombment or inurnment will be offered;
(18) Whether the applicant has any other
preconstruction sales projects at the location and, if yes, the preconstruction
sales project numbers and project names for each;
(19) If the applicant is eligible for
self-construction pursuant to
KRS
367.958(4), the following
information:
(a) A certified statement
regarding the projects the applicant has constructed in the past using
primarily equipment owned by the entity and the applicant's own personnel with
a minimum of subcontracting;
(b)
The name of the construction company;
(c) The parts to be subcontracted;
(d) The cost of the subcontracted parts;
and
(e) The name and address,
including city, state and zip code, of subcontractors;
(20) A statement of compliance where the
applicant signs and agrees to the following:
(a) To trust payments of money in compliance
with Kentucky's cemetery and preneed funeral laws, KRS
367.932-367.974;
(b) That, under
penalty of law, the information provided in the Cemetery
Presale/Preconstruction Project Application, CPN-3, is true and accurate to the
best of the applicant's knowledge;
(c) That the applicant will notify the
Attorney General immediately of any change in the information provided in the
Cemetery Presale/Preconstruction Project Application, CPN-3;
(d) That the applicant is not insolvent and
has not conducted business in a fraudulent manner;
(e) That the applicant is duly authorized to
do business in this state;
(f) That
the registration, if granted, may be revoked in accordance with KRS Chapter 13B
if the applicant violates any laws of Kentucky pertaining to trust funds or
contracts or violates any administrative regulations of the Attorney General
affecting those funds or contracts; and
(g) That the applicant is authorized to
complete the Cemetery Presale/Preconstruction Project Application, CPN-3, on
behalf of the cemetery company; and
(21) A dated and notarized signature of the
applicant including the title or position held by the applicant.
Section 7. Cemetery Registration
Application. The "Cemetery Registration Application", Form CPN-4, shall contain
the following information:
(1) The name of the
cemetery;
(2) The mailing address
of the cemetery, including the city, state, and zip code;
(3) The location of the cemetery, including
the city, state, and zip code;
(4)
The on-site telephone number of the cemetery;
(5) The total acreage that is
developed;
(6) The total acreage
that is undeveloped;
(7) The total
acreage sold to date;
(8) An
identification of any amenities used by the cemetery, including:
(a) Mausoleums;
(b) Crematory;
(c) Lawn crypts;
(d) Columbariums; and
(e) Scattering gardens;
(9) Whether any of the following additional
services are offered:
(a) At-need;
(b) Preneed burial/funeral;
(c) Preneed cemetery merchandise;
and
(d) Preconstruction;
(10) Information on all financial
institutions holding the business bank accounts, including:
(a) The name and address, including city,
state, and zip code; and
(b) The
account numbers of the business bank accounts;
(11) Information on all financial
institutions holding perpetual care and maintenance trust fund monies,
including:
(a) The name and address, including
city, state and zip code;
(b) The
account number;
(c) The principal
balance;
(d) The interest balance;
and
(e) The total
balance;
(12)
Information on all financial institutions holding cemetery merchandise trust
fund monies, including:
(a) The name and
address, including city, state and zip code;
(b) The account number;
(c) The principal balance;
(d) The interest balance; and
(e) The total balance;
(13) Information on all financial
institutions holding preneed burial contract trust fund monies, including:
(a) The name and address, including city,
state and zip code;
(b) The account
number; and
(c) The preneed burial
license number;
(14)
Information regarding mausoleum building on the cemetery premises, including:
(a) The number of crypts or niches;
(b) Whether all mausoleum crypts or niches
sold have been constructed;
(c) If
all mausoleum crypts and niches sold have not been constructed, the first date
of the sale of the crypts and niches;
(d) If all mausoleum crypts and niches sold
have not been constructed, the date construction began;
(e) If all mausoleum crypts and niches sold
have not been constructed, the preconstruction sales permit number;
and
(f) If all mausoleum crypts and
niches sold have not been constructed, the number of crypts or niches remaining
to be constructed;
(15)
Information regarding underground or lawn crypts, including:
(a) Whether all underground or lawn crypts
sold have been constructed;
(b) If
all underground or lawn crypts sold have not been constructed, the number of
crypts remaining to be constructed;
(c) If all underground or lawn crypts sold
have not been constructed, the first date of the sale of crypts;
(d) If all underground or lawn crypts sold
have not been constructed, the date construction began; and
(e) If all underground or lawn crypts sold
have not been constructed, the preconstruction sales permit number;
(16) Whether the owning entity
previously or currently operates one (1) or more cemeteries in any state other
than Kentucky;
(17) If the owning
entity has previously or currently operates one (1) or more cemeteries in any
state other than Kentucky, the following information:
(a) The name of the cemetery;
(b) The address of the cemetery, including
city, state and zip code; and
(c)
The dates on which the cemetery was operated;
(18) If the applicant is an existing
corporation, partnership, or sole proprietorship, the applicant shall attach a
complete and detailed financial statement for the last three (3) years showing
assets, liabilities, and reserves;
(19) If the applicant is a new corporation,
partnership, or sole proprietorship, the applicant shall attach a complete and
detailed financial statement including estimated receipts from all sources and
estimated expenditures for the next two (2) years;
(20) If this is a stock sale, a Certificate
of Good Standing from the Secretary of State shall be required;
(21) If the applicant is a corporation, the
following information:
(a) The name of the
parent corporation;
(b) The state
of incorporation;
(c) The corporate
headquarters mailing address, including city, state and zip code;
(d) The Kentucky business address, including
city, state and zip code, if different than the cemetery address;
(e) The Kentucky business telephone
number;
(f) The date of
incorporation;
(g) The name of the
resident process agent;
(h) The
address of the resident process agent, including the city, state and zip code;
(i) The tax identification number;
and
(j) The following information
on each incorporator, principal stockholder owning ten (10) percent or more,
director, officer and general manager:
1.
Name;
2. Title or
position;
3. Resident address,
including city, state and zip code; and
4. Social Security number;
(22) If the applicant
is a partnership, the following information;
(a) The name of each partner;
(b) The resident address, including city,
state and zip code of each partner;
(c) The position held by each partner;
and
(d) The Social Security number
of each partner;
(23) If
the applicant is a sole proprietorship, the following information:
(a) The name of the sole
proprietor;
(b) The resident
address, including city, state and zip code of the sole proprietor;
and
(c) The Social Security number
of the sole proprietor;
(24) If the applicant is a municipality, the
following information:
(a) The name of the
municipality;
(b) The address where
the records are held, including city, state and zip code;
(c) The telephone number of the location
where records are held;
(d) The
name of the custodian of records; and
(e) The title of the custodian of
records;
(25) A
statement, signed by the applicant or applicants, which includes the following:
(a) The applicant agrees to deposit funds in
compliance with Kentucky's cemetery and preneed laws, KRS
367.932-367.974;
(b) The applicant
states, under penalty of law, that the information provided on the application
is true to the best of the applicant's knowledge and that the applicant shall
notify the Attorney General within sixty (60) days of any material change in
the information provided on the application;
(c) The applicant is not insolvent, has not
conducted business in a fraudulent manner, and that the applicant is duly
authorized to do business in the Commonwealth of Kentucky;
(d) The applicant agrees that the
registration, if granted, may be revoked in accordance with KRS Chapter 13B if
the applicant violates any laws of Kentucky pertaining to trust funds or
contracts or violate any administrative regulations of the Attorney General
affecting those funds or contracts; and
(e) The signatory is authorized to complete
this form on behalf of the applicant;
(26) The date on which the applicant
completed the application;
(27) The
signature of the applicant and the title or position held by the applicant;
and
(28) For applicants applying
for exemption consideration, the following information:
(a) The tax-exempt number;
(b) Whether the cemetery is owned by a
religious group, private family burial ground, nonprofit organization, or sole
proprietorship;
(c) The name of the
cemetery;
(d) The location of the
cemetery, including city, state and zip code;
(e) The total number of acres;
(f) The total number of acres
plotted;
(g) The total number of
graves;
(h) The total number of
graves available;
(i) The total
number of graves used;
(j) Whether
spaces are provided to the general public;
(k) The current charge for one (1) grave
space;
(l) The current charge for
opening or closing the grave;
(m)
An attached copy of any arrangements that have been made for perpetual care and
maintenance expenses, including any bylaws or trust agreements;
(n) A list of the names and addresses of
those individuals who are responsible for the day-today operation of the
cemetery, including those who make maintenance decisions, accept payments, plot
spaces and keep records;
(o) Attach
any articles of organization, bylaws, or other information concerning the
responsibilities of these individuals, how they are elected or appointed, the
terms that they serve, and the method of reporting the operation of the
cemetery to the lot owners;
(p) An
affidavit of exemption where the applicant certifies that the cemetery for
which the application is made meets the qualifications for exemption provided
in
KRS
367.932(12), including:
1. The cemetery operates nonprofit;
2. The cemetery has no salaried employees,
directors, officers, or managers other than maintenance caretakers;
3. The cemetery is owned and controlled by
lot-owners; and
4. The cemetery
does not sell any preneed merchandise or services;
(q) A statement that the applicant is
authorized to sign the affidavit on behalf of the named cemetery and that if
any of the statements should change, the applicant shall notify the Office of
the Attorney General within thirty (30) days;
(r) The printed name of the
applicant;
(s) The street address,
city, state and zip code of the applicant; and
(t) A notarized signature of the applicant.
Section 8.
The following documents shall accompany each cemetery registration application:
(1) A certified copy of the Articles of
Incorporation, Articles of Partnership, or the partnership agreement;
(2) A copy of the bylaws;
(3) If a new cemetery, a certificate from the
agency having jurisdiction over zoning matters stating that the property on
which the cemetery is located is properly zoned for that purpose and the
applicant has complied with all applicable zoning ordinances;
(4) A statement of the applicant's proposed
plan of operation;
(5) If a foreign
corporation, evidence of qualification to do business in Kentucky;
(6) A certified copy of the perpetual care
trust agreement, cemetery merchandise trust agreement, preneed burial trust
agreement, and preconstruction trust agreement; and
(7) If a new cemetery, proof of deposit of
initial contribution to the perpetual care trust fund as required by
KRS
367.952.
Section 9. Cemetery Company and Cemetery
Merchandise Sellers Monthly Report. The "Cemetery Company and Sellers of
Cemetery Merchandise Monthly Report", Form CPN-5, shall contain the following
information:
(1) The name of the cemetery
company or cemetery merchandise seller and the city in which it is
located;
(2) The telephone number
of the cemetery company or cemetery merchandise seller;
(3) The name of the financial institution
holding the cemetery company or cemetery merchandise seller's funds;
(4) The registration number of the cemetery
company or cemetery merchandise seller's account held by the financial
institution;
(5) The preneed burial
license number;
(6) The month for
which the report is submitted;
(7)
The signature of the individual completing the report; and
(8) The following information for all
contracts entered between a consumer and the cemetery company or cemetery
merchandise seller for the month for which the report is submitted:
(a) The date on which a contract was
entered;
(b) The amount received on
the contract;
(c) The consumer's
name and address, including address, city, state and zip code;
(d) The number of items sold over and under
$500 per consumer and in total for the month;
(e) The number of preneed funeral items sold
per consumer and in total for the month;
(f) The number of preconstruction items sold
per consumer and in total for the month;
(g) The number of preneed cemetery
merchandise items sold per consumer and in total for the month;
(h) The administrative fees due per person
per contract and in total for the month;
(i) The consumer security fees due per
consumer and in total for the month; and
(j) The total fees submitted per consumer for
the month and in total for the month.
Section 10. Preneed Merchandise Sellers
Application. The "Preneed Merchandise Sellers Application", Form CPN-6, shall
contain the following information:
(1) The
applicant's name, including the funeral home, cemetery or business
name;
(2) The following corporate
information:
(a) The date of
application;
(b) The state of
incorporation;
(c) The corporate
headquarters mailing address, including city, state and zip code;
(d) The Kentucky business address, including
city, state and zip code;
(e) The
Kentucky business telephone number;
(f) The date of incorporation;
(g) The name of the resident process
agent;
(h) The address of the
resident process agent, including city, state and zip code; and
(i) The applicant's tax identification
number;
(3) For each of
the applicant's incorporators, principal stockholders (one who owns a ten (10)
percent or greater interest), directors, officers, and general managers, the
following information shall be provided:
(a)
Name;
(b) Title or
position;
(c) Resident address,
including city, state and zip code; and
(d) Social Security number;
(4) For applicants organized as a
partnership, the following information shall be provided:
(a) The name of each partner;
(b) The position held by each partner;
and
(c) The Social Security number
of each partner;
(5) For
applicants organized as a sole proprietorship, the following information shall
be provided:
(a) The name of the sole
proprietor; and
(b) The Social
Security number of the sole proprietor;
(6) If this is a stock sale, a Certificate of
Good Standing from the Secretary of State shall be attached to the Preneed
Sellers Application;
(7) Applicants
which are an existing corporation, partnership, or sole proprietorship shall
include a complete and detailed financial statement for the past three (3)
years showing assets, liabilities, and reserves;
(8) For an applicant that is a new
corporation, the following information shall be provided:
(a) The amount of stock subscribed;
(b) The consideration for all stock
issued;
(c) The amount of
promotional stock involved; and
(d)
To whom the promotional stock is issued;
(9) Applicants which are a new corporation,
partnership or sole proprietorship shall include a complete and detailed
financial statement including estimated receipts from all sources (including
capitalization, sales, and loans) and estimated expenditures for the next two
(2) years;
(10) For applicants or
owning entities that sell preneed burial contracts at any other location or
business in Kentucky, the following information shall be provided:
(a) The name of the business;
(b) The address of the business, including
city, state and zip code; and
(c)
The dates of business operation;
(11) For applicants or owning entities
selling preneed burial contracts in other states within the United States, the
following information shall be provided:
(a)
The name of the business;
(b) The
address of the business, including city, state and zip code; and
(c) The dates of business
operation;
(12) The name
of the funeral home, cemetery, or business selling preneed burial
contracts;
(13) The mailing
address, including city, state and zip code, of the funeral home, cemetery, or
business selling preneed burial contracts;
(14) The location of the funeral home,
cemetery or business selling preneed burial contracts;
(15) A letter attached to the Preneed
Merchandise Sellers Application, Form CPN-6, from a financial institution that
has agreed to hold the trust fund accounts for the applicant;
(16) The name, address (including city,
state, and zip code) and account number of the financial institution holding
the business bank account;
(17)
Whether the applicant is going to solicit the sale of preneed burial contracts
by a home solicitation program;
(18) Whether the applicant is familiar with
Kentucky's Home Solicitation Sales Law, KRS 367.410-367.460;
(19) A statement, dated and signed by the
applicant, where the applicant agrees to the following:
(a) Applicant shall deposit payments of money
in compliance with Kentucky's cemetery and preneed funeral laws, KRS
367.932-367.974;
(b) Applicant
states under penalty of law that all information given on the Preneed
Merchandise Sellers Application is true and accurate to the best of the
applicant's knowledge;
(c)
Applicant shall notify the Attorney General immediately if any information
given in the Preneed Merchandise Sellers Application changes;
(d) Applicant is not insolvent and has not
conducted business in a fraudulent manner and is duly authorized to do business
in this state;
(e) Applicant agrees
that the preneed sales license, if granted, may be denied, suspended, or
revoked in accordance with
KRS
367.973;
(f) Applicant is authorized to complete the
Preneed Merchandise Sellers Application, CPN-6, on behalf of the business;
and
(20) The signature
of all applicants, incorporators, principal stockholders owning ten (10)
percent of total shares, directors, officers, and general managers associated
with the corporation named herein or, if a sole proprietorship or partnership,
by all owners or general partners, and the title of position held.
Section 11. The following
documents must accompany each cemetery registration application:
(1) A certified copy of the Articles of
Incorporation, Articles of Partnership, or the partnership agreement;
(2) A copy of the bylaws;
(3) A statement of the applicant's proposed
plan of operation;
(4) If a foreign
corporation, evidence of qualification to do business in Kentucky;
and
(5) A letter from the financial
institution which has agreed to hold the trust fund account.
Section 12. Preneed Sellers
Monthly Report. The "Preneed Burial Sellers Monthly Report", Form CPN-7, shall
contain the following information:
(1) The
name of the preneed burial seller and city in which it is located;
(2) The month for which the report is
submitted; and
(3) The following
information for all contracts entered between a consumer and the preneed burial
contract seller for the month for which the report is submitted:
(a) The date on which the contract was
entered into between a consumer and the preneed burial contract
seller;
(b) The name of the
financial institution holding the consumer's funds;
(c) The address of the financial institution
hold the consumer's funds, including city, state, and zip code;
(d) The amount received on the
contract;
(e) The consumer's name
and address;
(f) Whether the
contract was irrevocable;
(g) The
fee that was assessed for the individual contract; and
(h) The total fees collected for the
month.
Section
13. Irrevocable Funeral Trust Agreement. The "Irrevocable Funeral
Trust Agreement", Form CPN-8, shall contain the following information:
(1) The name and Social Security number of
the beneficiary that has received, applied for, or intends to apply to be an
aged, blind, or disabled recipient of benefits pursuant to the Federal
Supplementary Security Income Program under Title XVI of the Social Security
Act or other federal or state entitlement programs;
(2) An acknowledgement by the beneficiary
that the money paid to the specified funeral home, intended to pay for funeral
arrangements of the beneficiary pursuant to a prearranged funeral agreement,
contract or plan and deposited by the funeral home, as agent, in a Kentucky
bank, savings and loan, or credit union, as trustee, constitutes an irrevocable
trust fund during the lifetime of the beneficiary and forms a part of the
prearranged funeral agreement;
(3)
An acknowledgement by the beneficiary or grantor that if, for any reason, the
beneficiary or grantor fails to apply for entitlement benefits within thirty
(30) days from this signing of this irrevocable funeral trust agreement, fails
to receive, or otherwise becomes ineligible for entitlement benefits, the
irrevocable funeral trust agreement shall become a revocable funeral trust
agreement;
(4) An acknowledgement
by the beneficiary or grantor that the irrevocable funeral trust agreement
shall not affect the selection of funeral goods or services or the selection of
the funeral home and that, at any time, the beneficiary or grantor of the
irrevocable trust may, by written request to the funeral home (as agent) and
bank (as trustee), change the agent, trustee, or both;
(5) The beneficiary or grantor acknowledges
that by signing the irrevocable funeral trust agreement, the beneficiary or
grantor gives authorization to the funeral home and the Attorney General,
Commonwealth of Kentucky, to access the appropriate records to ensure
compliance with KRS Chapter 367;
(6) The signature of the beneficiary or
grantor;
(7) The name and address
of the funeral home, including the city, state and zip code;
(8) The signature of an authorized
representative of the funeral home; and
(9) The date on which the irrevocable funeral
trust agreement is signed.
Section
14. Incorporation by Reference.
(1) The following material is incorporated by
reference:
(a) "Sellers of Cemetery
Merchandise and Cemetery Companies Annual Report", Form CPN-1, 11-02;
(b) "Preneed Burial Contract Annual Report",
Form CPN-2, 11-02;
(c) "Cemetery
Presale and Preconstruction Project Application", Form CPN-3, 11-02;
(d) "Cemetery Registration Application", Form
CPN-4, 11-02;
(e) "Cemetery Company
and Sellers of Cemetery Merchandise Monthly Report", Form CPN-5,
11-02;
(f) "Preneed Merchandise
Sellers Application", CPN-6, 11-02;
(g) "Preneed Sellers Monthly Report", Form
CPN-7, 11-02; and
(h) "Irrevocable
Funeral Trust Agreement", Form CPN-8, 11-02.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Office of the Attorney
General, 1024 Capital Center Drive, Frankfort, Kentucky 40601, Monday through
Friday, 8 a.m. to 4:30 p.m.
STATUTORY AUTHORITY:
KRS
15.180,
367.150(4),
367.972(2)